The Companies Act 2009 sets the requirements for the preparation and presentation of financial statements in Rwanda, mandating that they be prepared in accordance with international accounting standards. The Law on the...

The Companies Act 2009 sets the requirements for the preparation and presentation of financial statements in Rwanda, mandating that they be prepared in accordance with international accounting standards. The Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 (iCPAR Law 2008) authorizes the iCPAR, under Article 3, to set accounting standards compliant with IFRS. In line with this requirement, iCPAR adopted IFRS for application by companies with public accountability (banks and other financial institutions) and IFRS for SMEs for application by all other companies. SMEs that are not companies (such as proprietorships and partnerships) are also permitted to use the IFRS for SMEs.

The Companies Act 2009 states that the financial statements of all companies, except small private companies, must be audited annually by a licensed member of iCPAR. Article 3 of the iCPAR Law 2008 establishes iCPAR as the auditing standard-setter and requires that the auditing standards in Rwanda be consistent with ISA issued by the IAASB. In line with this requirement, iCPAR has adopted ISA as issued by the IAASB without amendment.

In addition to the requirements of the Companies Act, the Banking Act of 2002 empowers the National Bank of Rwanda (NBR) to regulate financial reporting by banks, non-bank financial institutions, and insurance companies, and to issue accounting instructions governing the treatment of specific transactions. The NBR requires these institutions to designate at least one external auditor chosen from a list generated by the NBR.

The Capital Market Authority defines the regulatory framework under which the Rwanda Stock Exchange operates. Listed companies are expected to comply with the requirements of IFRS and ISA.

The accountancy profession in Rwanda is self-regulated by the Institute of Certified Public Accountants of Rwanda (iCPAR). iCPAR was established under the Law on the Institute of Certified Public Accountants (iCPAR) No...

The accountancy profession in Rwanda is self-regulated by the Institute of Certified Public Accountants of Rwanda (iCPAR). iCPAR was established under the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 (iCPAR Law 2008) with the mandate to regulate the accounting profession in Rwanda.

In accordance with Article 7 of iCPAR Law 2008, iCPAR is responsible for: (i) setting auditing standards for the private and public sector; (ii) establishing and implementing initial professional development and continuing professional development requirements; (iii) investigating and disciplining its members for misconduct and breach of professional standards; (iv) issuing practicing licenses for qualified members who wish to practice public accountancy; (v) maintaining a register of licensed members and firms; (vi) setting ethical requirements for members; (vii) establishing a quality assurance review system for all audits; and (viii) advising the government on matters relating to the profession.

Under iCPAR Law 2008, iCPAR confers two designations for its members: Certified Public Accountant (CPA) and Certified Accounting Technician depending on their course of study. To hold the CPA designation, a qualified individual must pass iCPAR’s qualification examinations set by the institute’s Education, Curriculum Development, and Examinations Commission, have two years of practical experience, and receive a practicing license from the Institute. Only CPAs are eligible to conduct audits in Rwanda.

The Institute of Certified Public Accountants of Rwanda (iCPAR) was established under the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 (iCPAR Law 2008) with the mandate to regulate the...

The Institute of Certified Public Accountants of Rwanda (iCPAR) was established under the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 (iCPAR Law 2008) with the mandate to regulate the accounting profession in Rwanda. iCPAR confers two designations for its members: Certified Public Accountant (CPA) and Certified Accounting Technician depending on their course of study. iCPAR membership is mandatory for CPAs, and only CPAs may conduct audits.

In accordance with Article 7 of the iCPAR Law 2008, iCPAR is responsible for: (i) setting auditing standards for the private and public sector; ii) establishing and implementing initial professional development and continuing professional development requirements; (iii) investigating and disciplining its members for misconduct and breach of professional standards; (iv) issuing practicing licenses for qualified members who wish to practice public accountancy; (v) maintaining a register of licensed members and firms; (vi) setting ethical requirements for members; (vii) establishing a quality assurance review system for all audits; and (viii) advising the government on matters relating to the profession.

In addition to being an IFAC Associate, iCPAR is a member of the Pan African Federation of Accountants.

As part of the UK’s Department of International Development-funded IFAC professional accountancy organization (PAO) Capacity Building Program, the Association of Chartered Certified Accountants (ACCA) is working with...

As part of the UK’s Department of International Development-funded IFAC professional accountancy organization (PAO) Capacity Building Program, the Association of Chartered Certified Accountants (ACCA) is working with iCPAR to update its strategic plan and create a work plan to implement the strategy, which will include reviewing and strengthening the systems for accountancy education, qualification, and continuing professional development. The program is expected to be completed in March 2017.

In addition, as a follow up on the policy recommendations made by a World Bank 2008 Report on the Observance of Standards and Codes, ACCA was contracted to establish iCPAR’s audit quality assurance function. iCPAR launched its Audit Quality Assurance Review program in September 2015. The first review cycle was the pilot phase during which ACCA conducted audit reviews for all audit firms in Rwanda and provided them with an initial assessment of the quality of their audits, which will form the basis for improvements in subsequent review cycles. The contract was to end in April 2016. Subsequently, iCPAR plans on hiring a Practice Monitoring Officer to continuously monitor compliance.

iCPAR is also a co-signatory of the mutual recognition agreement (MRA) between PAOs in the East African Community (EAC) Institutes of Accountancy. The EAC is moving towards the harmonization of its economies, including the harmonization of qualifications and regulation of qualifications. The objective of the MRA is to facilitate the mutual recognition of members of PAOs in the region who have completed a professional accountancy qualification in line with the IES requirements.

The Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 gives iCPAR the responsibility of establishing a quality assurance (QA) review system. iCPAR contracted the Association of Chartered...

The Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 gives iCPAR the responsibility of establishing a quality assurance (QA) review system. iCPAR contracted the Association of Chartered Certified Accountants (ACCA) to carry out its Audit Quality Assurance review program and, in September 2015, ACCA conducted the first cycle of reviews for all audit firms in Rwanda as part of the pilot phase of the program. The contract was to end in April 2016. Subsequently, iCPAR plans on hiring a Practice Monitoring Officer to continuously monitor compliance. iCPAR reports that it has adopted ISQC 1 and that its QA review system is partially compliant with the revised SMO 1 requirements.

Current Status: Partially Adopted

The Institute of Certified Public Accountants (iCPAR) is mandated by the Law on the iCPAR No. 11 of 2008 to oversee training and education requirements—both initial and continuous professional development (IPD and CPD...

The Institute of Certified Public Accountants (iCPAR) is mandated by the Law on the iCPAR No. 11 of 2008 to oversee training and education requirements—both initial and continuous professional development (IPD and CPD, respectively)—for professional accountants in Rwanda.

iCPAR’s Education, Curriculum Development, and Examinations Commission establishes the syllabus, curriculum, and examinations for membership to the institute as either a Certified Public Accountant or Certified Accounting Technician. With the assistance of the Institute of Certified Public Accountants in Ireland, iCPAR reports its CPA qualification was developed in line with IES. The institute’s Capacity Building and Training Department is responsible for implementing and monitoring compliance with the mandatory CPD requirements, which are in line with revised IES 7.

iCPAR reports that it is in the final stages of developing a practical experience framework for students in its qualification program, which would require three years of practical experience. It is expected to be completed by 2017 as part of the IFAC PAO Capacity Building Project.

Current Status: Partially Adopted

Article 3 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 mandates that iCPAR adopt and implement auditing standards in Rwanda. The Law requires that auditing standards in Rwanda be...

Article 3 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 mandates that iCPAR adopt and implement auditing standards in Rwanda. The Law requires that auditing standards in Rwanda be consistent with ISA issued by the IAASB.

iCPAR states in its 2016 Action Plan that it adopts ISA as issued by the IAASB without modifications, including effective dates.

Current Status: Adopted

Article 82 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 provides that the Code of Professional Conduct and Ethics shall be established through a Ministerial Order. The provisions of...

Article 82 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 provides that the Code of Professional Conduct and Ethics shall be established through a Ministerial Order. The provisions of the Code are to be consistent with the IESBA Code of Ethics for Professional Accountants. In March 2012, iCPAR issued a Code of Professional Ethics consistent with the 2010 IESBA Code of Ethics for application by its members. iCPAR reports that it is reviewing the requirements of the IESBA Code in effect as of 2016 with a view to adopting them.

Current Status: Adopted

The East African Community (EAC) Protocol includes a requirement for member states to adopt accrual-basis IPSAS for central and local governments, non-trading state-owned enterprise and regulatory bodies, and IFRS for...

The East African Community (EAC) Protocol includes a requirement for member states to adopt accrual-basis IPSAS for central and local governments, non-trading state-owned enterprise and regulatory bodies, and IFRS for state-owned enterprises. As a member state of the EAC, the Rwandan Government set an objective to achieve full compliance with the cash-basis IPSAS by June 30, 2016, and aims to achieve full compliance with the accrual-basis IPSAS by June 30, 2020.

Article 3 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 establishes iCPAR as the public sector accounting standard-setter and requires that, within public institutions, the accounting standards be consistent with IPSAS. Under the Law, iCPAR is also responsible for advising the Rwandan Government on matters related to public financial management and accountancy.

iCPAR reports that, as of 2016, public sector entities are using modified accrual IPSAS and cash-basis IPSAS for specific items.

Current Status: Partially Adopted

In accordance with Article 40 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008, iCPAR is responsible for the investigation and discipline (I&D) of its members for breach of rules and...

In accordance with Article 40 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008, iCPAR is responsible for the investigation and discipline (I&D) of its members for breach of rules and misconduct. iCPAR has established a Disciplinary Commission with an appeals mechanism. Although some of the SMO 6 requirements have been incorporated into the institute’s I&D system, some requirements are missing. The institute reports that it is working to incorporate both information-based and complaints-based approaches into the I&D process.

As of 2016, only the Disciplinary Commission conducts investigations and hears cases and subsequently makes recommendations to iCPAR’s Governing Council. iCPAR reports in its 2016 Action Plan that it plans to separate the investigations and hearings of cases to enhance independence and compliance with the revised SMO 6 requirements. These changes will require a change in iCPAR’s structure and are expected to be completed by 2017 after the Association of Chartered Certified Accountants reviews iCPAR’s strategic plan.

Current Status: Partially Adopted

Article 3 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 provides that, within the private sector, the accounting standards must be consistent with IFRS. (iCPAR has adopted IFRS and...

Article 3 of the Law on the Institute of Certified Public Accountants (iCPAR) No. 11 of 2008 provides that, within the private sector, the accounting standards must be consistent with IFRS. (iCPAR has adopted IFRS and IFRS for small- and medium-sized entities (SMEs). Companies with public accountability (banks and other financial institutions) must use full IFRS. All other companies should use IFRS for SMEs. SMEs that are not companies (such as proprietorships and partnerships) are also permitted to use IFRS for SMEs. As the accounting standard-setting body, iCPAR adopts IFRS without modifications.

In addition to the requirements of the Companies Act, which mandates the use of international accounting standards, banks, financial institutions, and insurance companies are regulated by the National Bank of Rwanda and are required to apply IFRS.

Listed companies regulated by the Capital Market Authority are also required to use IFRS.

Current Status: Adopted

Relevant OrganizationsInstitute of Certified Public Accountants of Rwanda (iCPAR)East African Community (EAC)Relevant LegislationiCPAR’s By-LawsLaw on the Institute of Certified Public Accountants (iCPAR) No. 11, 2008...

Relevant Organizations

• Institute of Certified Public Accountants of Rwanda (iCPAR)
• East African Community (EAC)

Relevant Legislation

• iCPAR’s By-Laws
• Law on the Institute of Certified Public Accountants (iCPAR) No. 11, 2008, 2008
• Companies Act, 2009

Relevant Publications

• iCPAR, SMO Action Plan, April 2016.
• IFAC, “IFAC Selects ACCA to Strategically Strengthen Accountancy Profession in Rwanda,” January 2016.
• IFRS Foundation, “IFRS Application Around the World—Jurisdictional Profile: Rwanda,” March 2015.
• World Bank, Report on Observance of Standards and Codes—Accounting and Auditing: Rwanda, 2008.